Cairn to hike Rajasthan crude pipeline capacity

Vol 18, PW 7 (20 Nov 14) Midstream & Downstream

Cairn plans to increase the crude evacuation capacity of its 680-km pipeline from Barmer in Rajasthan to Bhogat in Gujarat from 200,000 b/d to 300,000 b/d.

It also plans to increase the capacity of its 590-km parallel gas pipeline from 6.3m cf/d (178,000 cm/d) to its maximum capacity of 40m cf/d (1.1m cm/d). Cairn will hold a public hearing to clear both these expansions on December 12 at its Viramgam terminal near Ahmedabad, which lies along the route of the pipelines.

“If they start work by early 2015 then it should be completed by 2017,” says an observer. Already Cairn is supplying 80,000 b/d to Reliance’s 1.24m b/d Jamnagar refinery and another 80,000 b/d to Essar’s 405,000 b/d Vadinar refinery.

Around 25,000 b/d goes to IndianOil’s Koyali and Mathura refineries. But the Barmer to Bhogat pipeline has not yet been fully commissioned - problems securing RoU permission from farmers meant Cairn had to delay pipeline laying work and the commissioning of a 70-km stretch from Salaya to Bhogat.

Cairn got the RoU clearances early this year after paying farmers Rs37,000/guntha ($606) of land (40 gunthas = 1 acre). In a note to the Gujarat government in October, Cairn says the partially commissioned 24-inch diameter pipeline will be fully commissioned end-December.

“Cairn can then begin supplying crude to ONGC’s Mangalore refinery,” says a Gandhinagar source.